Hope for Australia’s Residential Property Market
Posted on 28 August 2019
Things are looking up for the residential property market, which is welcomed news after the recent downturn. House prices have been in a steady decline since October 2018 but new research indicates that we may start to see an improvement.
Lowered confidence amongst buyers, limited access to finance and tighter lending conditions have all contributed to a lull in the market, but a new report by CBRE is suggesting that the market may take a turn.
Home ownership has also been declining year-on-year but population growth in Australia’s major cities is predicted to reduce this trend, with the number of Australian households projected to rise from 8.42 million to over 12.5 million by 2036.
The recent re-election of the Coalition has also eased consumer concerns around stability within the economy. There have been exciting policy developments around the current First Home Loan Deposit Scheme. Proposed changes would allow individuals earning up to $125,000 (or couples earning up to $200,000 combined) to purchase a new home with a deposit as little as 5% without the added burden of lenders mortgage insurance, which will open up a lot of opportunities for younger/lower income families to have access to a loan.
There has also been a strategic shift to owner-occupier dwellings by developers who may have previously targeted the investment market. This has seen a rise of luxury homes and apartments which prioritise quality over quantity.
View the CBRE Residential Projects Market Perspective report here: https://indd.adobe.com/view/dc37ca5c-341d-41ee-b3ad-c4e46f3082bc